2 Mega-Cap Stocks Wall Street Predicts Will Rally More Than 60%

As expected by the market, the Fed has hiked the benchmark interest rate by 50 bps in an attempt to curb runaway inflation. While the market braces itself for the future, many analysts are concerned that the economy may slip into recession because of…

the central bank’s tightening monetary policy and the consequences of an intensifying geopolitical crisis. However, according to Fed Chairman Jerome Powell, “The American economy is very strong and well-positioned to handle tighter monetary policy.”

Recession or not, mega-cap stocks deliver steady returns thanks to their broader market reach, ample liquidity, and pricing power. So, we think it could be safer to bet on quality mega-cap stocks to provide some cushion to one’s portfolio because the stock market is expected to remain highly volaille in the near term.

Wall Street analysts expect fundamentally strong mega-cap stocks Alibaba Group Holding Limited (BABA) and NVIDIA Corporation (NVDA) to rally more than 60% in price in the coming months. So, it could be wise to add these stocks to your watchlist.

Alibaba Group Holding Limited (BABA)

Based in Hangzhou, the People’s Republic of China, BABA and its subsidiaries provide technology infrastructure and marketing reach to merchants, brands, retailers, and other businesses around the globe. It has four segments: Core Commerce; Cloud Computing; Digital Media and Entertainment; and Innovation Initiatives and Others. Its current market capitalization is $280.28 billion.

On April 22, 2022, BABA joined Low Carbon Patent Pledge, an international platform that encourages sharing patents for low carbon technologies, to accelerate the adoption of green technology. Dr. Chen Long, BABA’s Vice President and Chair of BABA’s Sustainability Steering Committee, said, “We are excited to join the pledge as a way to encourage a collective approach to build a sustainable and inclusive future for the society and environment through open collaboration, joint innovations and mutual inspiration.”

BABA’s revenue came in at $38.07 billion for the quarter ended Dec. 31, 2021, up 9.7% year-over-year. Its total current assets were  $105.94 billion for the period ended Dec. 31, 2021, compared to $97.16 billion for the period ended March 31, 2021. Also, the company’s total assets came in at $276.27 billion, compared to $255.25 billion, for the same period a year ago.

For its fiscal 2022, analysts expect BABA’s revenue to be $128.47 billion, representing a 16% year-over-year rise. The company’s EPS is expected to increase 3.5% to $8.03 in 2023. The stock closed yesterday’s trading session at $101.41. Wall Street analysts expect the stock to hit $170.29 in price in the near term, which indicates a potential upside of 67.9%.

Recently the Reitmeister Total Return Portfolio (RTR) closed a winning trade in BABA for a 53% gain. Learn more about the RTR service here.

NVIDIA Corporation (NVDA)

NVDA in Santa Clara, Calif., provides graphics, computing, and networking solutions in the United States, Taiwan, China, and internationally. Its segments are Graphics; and Compute and Networking. The company has a strategic collaboration with Kroger Co. Its current market capitalization is $506.72 billion.

On Feb. 16, 2022, NVDA’s founder, and CEO Jensen Huang said, “We are entering the new year with strong momentum across our businesses and excellent traction with our new software business models with NVIDIA AI, NVIDIA Omniverse and NVIDIA DRIVE. GTC is coming. We will announce…

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